So yet more testing trying to figure out what is going on, I Installed the windows 8 updates and also the latest nvidia drivers, still the same problem . I then installed windows 7 back on my pc just to rule out the problem being related to a windows 8 , no luck there either so while out for a walk I began to wonder if it was a vsync problem, and sure enough when I turned off vsync in blender or in the nvidia control panel the problem went away.
There seems to be some kind of vsync control war going on between Blender and my Asus 660TI video card. Turning off vsync in the nvidia panel gave blender control, adaptive and on settings worked fine, but as soon as I gave control back to Nvidia the the blender vsync settings caused a conflict.
The method that worked best for me was to set the nvidia vsync setting to (use the 3D application) and turn off vsync in Blender.
With this setting there was no need to have my temp solution of 1 logic tick in the always sensor, hopefully this info is useful to someone else out there and saves them the mission I had.
Just wish I had thought of it earlier :spin: